INDIAN Authors - USA(iTin) Tax Discussion Only

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Is it PAN or not? In the instructions it says that foreign tax ID is the number allotted in your country by government for tax purposes.

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One more thing to consider is,

They withhold only the sales within US. So, still we have to pay tax in india for other global sales. (eg: sales from canada, UK etc…)

So, At the end of the year, we should have a document for how much we earned from US sales and from other sales. So that we can calculate tax accordingly.

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I found a url for indian authors to get an ITIN from irs, click on following link

but they will charge $50

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###Just found that the Perfect Alternative for ITIN is an EIN (Employer Identification Number)

We can apply online, and they will provide a number instantly after completing the form.

IRS Online Form (Weekdays only, 7am to 10pm Eastern Time)
PDF Form (below it says, we can apply for Tax Treaty benefits)
How to Fill Form SS4 (EIN Form)

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@surjithctly There is no tax for selling digital goods online in India. We have only service tax if we sell services to foreign clients that too when our total turnover crosses 10 lacs.

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Are you sure about that one? It says in the eligibility section that…

1) You may apply for an EIN online if your principal business is located in the United States or U.S. Territories.

2) The person applying online must have a valid Taxpayer Identification Number (SSN, ITIN, EIN).

If you meet the criteria for number one, then you don’t need to fill in a W8, you need to fill in a W9. And if you meet the criteria for number two, then you don’t need an EIN as you’ve already got an SSN, ITIN or an EIN.

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Yes. If you see the bottom of that PDF. it says, we can submit it for Tax Treaty purpose, In that case those fields are optional.

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Jolly good! Nice find.

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Thank you so much for this info. Even though I’m not an Indian but this post is highly informative, so I think you should post it as a notice on this forum. :smiley:

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Hi Im an Grafics Artist and I really doono what to do with this new change in Envato
Can anyone please tell me. which form I fill and where to summit it.
Its really Horrible now. W9 W8 W7.
Happy Halloweens Envato Staffs :frowning:

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You’re from India by the looks of it, so you fill in a W8. If you don’t fill it in you’ll get 30% withheld on all sales. If you fill it in without a tax ID then you’ll get withheld 30% on all US sales but not on non-US sales, and if you fill it in with a valid tax id, tin, ein etc, then you’ll get 15% withheld on all US sales and 0% on all non-US sales.

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It seems to do the task. Did you submit yet?

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@surjithctly

It looks only US guys can apply online. Others have to apply through their phone no??

Q. Are any entity types excluded from applying for an EIN over the Internet?
A. No. All customers whose principal business, office or agency, or legal residence (in the case of an individual) is located in the United States or in one of the U.S. Territories can apply for an EIN online. The principal officer, general partner, grantor, owner, trustor etc. must have a valid Taxpayer Identification Number (Social Security Number, Employer Identification Number, or Individual Taxpayer Identification Number) in order to use the online application.

If you were incorporated outside of the United States or the U.S. territories, you cannot apply for an EIN online. Please call us at (267) 941-1099 (this is not a toll free number) between the hours of 6:00 a.m. to 11:00 p.m. Eastern Time.

The following blog seems to be useful.

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We too have consulted our accountant, he needs 4-5 days as ours is unique case for him, as it is for ‘all authors’ accountants :slight_smile: .
Will drop comment here once I get some good solution. For now, he advised not to apply for any number hurriedly.

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@surjithctly

Can i enter the PAN Card No (Foreign Tax ID Number) in this field?

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PAN is account number(permanent account number) not Identification number. TIN is Tax identification number

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Why did envato make it this complicated? Still no clarity for authors without TIN number…

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In one reply by collis today, it indicates we can use PAN as Foreign Tax ID. Here is the reply as below:

I believe this should allow using PAN as Foreign Tax Id for Indians?

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Here is a important clarification for EIN and PAN for Indians

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LOL. We can simply change it when filling the tax form. But if they found fraud, you may need to pay fine too… :slight_smile: better pay tax and stay calm :stuck_out_tongue:

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